Essay about Recommendations To Atlas Electrica - Case

1750 Words 7 Pages
Atlas Eléctrica recommendation:

External strategy:

1) Buy La Indeca and the store chain La Curacao:
- Why: To keep market shares and leadership in Central America, deeper market coverage.
- How: Take long-term loans
- Alternative: It will kill the company if other competitors buy La Indeca (Mabe, Whirlpool, LG, Samsung in Mexico)–they would take market shares from Atlas Eléctrica and by the time wipe out the company from Central America where Atlas Eléctrica has the biggest market shares.

2) Focus on Central America:
- Why: to keep the market leadership in that region –deeper coverage to its natural market. –It will strengthen the company - and prepare it to expand or to win market shares in The Caribbean and
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This the company cannot afford at the moment.

How: Be up to date with the market needs and keep on developing the product lines in order to be up front with the newest products. Keep the focus also on customer guarantee. Improve the distribution of products (By acquisitioning La Indeca the company can use the retail-store chain La Curacao to distribute its products in order to reach its target group. Keeping the Cetron brand for refrigerators owned by La Indeca the company would be able to gain market shares in the middle-income segment which is La Indecas target group. It is important that it takes market characteristics in Mexico and Guatemala into account in its product lines as these countries are different from the rest of Central America.

4) Gaining market shares -South America/Caribbean:
- When: Financial situation is strengthened from profitable markets in Central America.
- How: It should try to gain more market shares in countries where it is already operating by putting more emphasis on marketing and by establishing trade subsidiaries so that it can be more present on the markets. These trade subsidiaries should take care of sales, promotion, marketing, orders and the market research both in relation to customers/consumers and the competitors. This is then communicated back to the head quarter in Costa Rica. In this way Atlas Eléctrica can

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